High-Frequency Trading is a method of trading that uses powerful computer programs to transact a large number of transaction orders in fractions of a second.
A complex algorithm is developed to analyze multiple markets and execute orders based on market conditions.
HFT companies have high turnover rates and a greater order-to-trade ratio (higher rate of executing transactions successfully).
High-Frequency Trading came into existence when the NYSE was looking for companies who could increase the liquidity of transactions and make the quotes more competitive.
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